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HR Transformation

Introduction

Nowadays, HR professionals become strategic partners of the organizations and they  have  significant roles such as efective recruitment, fair salary sharing, education of employees and organizational development. So HR professionals should support organization to overcome the changes on economical, global, technological, demographic challenges. The transformation starts with HR.

HR professionals should not only deal with his/her job, they also deal with outside and they should have same objects with the organization such as customers, investors.

Traps Should Be Avoided (Viruses)

–          HR transformation should fit the organization culture and roots.

–          HR transformation aim should be the enrich the organization, not only the HR.

–          Talent management, performans management, promotion process is only small part of transformation. The whole transformation should integrate all the processes.

–          HR transformation should not be performed only a single manager.

–          HR transformation finishes when HR helps the organization to perform its strategy.

–          Productivity improvements are key factors for the transformation.

A Real HR Transformation Definition is an approach that redefining the how innovative, compatible and work focused HR activities are prosecuted that help business to keep their promise to the customers, investors and other stakeholders. This process should be defined clearly.

There are four main steps to make HR transformation :

1.Step : Why should be done HR transformation?

If the reasons of HR transformation are completely understood, it would be easier to achive it. To make a sustainable transformation, it should be directly fit the organization strategy and the environmental factors. To overcome this, you should start to work from work environment and stakeholder’s expectations. It is important to determine whether the organization is ready to transform.

In the globalizing world, to make a efficient transformation, HR professionals should also deal with demographic trends, gender differences, generation, workforce diversification, political enviroment, market conditions, general work conditions, organization strategy etc.

The stakeholders of a company are employees, managers, customers, investors, rivals, global suppliers, regulators, and public. Thus HR proffessionals should care about all these.

Customers become more knowledgeable and need more day by day. Customers are more selective than before so the mission of HR proffesionals is understanding customers and developing relationship with them. To improve relationship, they might visit customers periodically.

Investors also give importance to intengible values. They pay attention more  leadership and quality of organization rather than balance sheet. So the duty of HR proffessionals is to give confidence about the future of the organization to investors by applying good HR practices.

HR proffessionals should understand both current and future rivals. They should also determine the strenghts and weaknesses of the rivals in the market.

The suppliers of the company can be a source of advantage or disadvantage so HR should  make balanced and cost-effective contracts with critical suppliers.

Regulations might affect the ability to compete of the company so HR managers should learn regulations earlier and should be  the active appliers of the regulations.
2.Step : What is the results and benefits of transformation?

The HR facilities should be measued such as “How many people are recruited”,”How much hour education has given” but not enough. First of all, the expectations of the stakeholders should be satisfied. For example, it can be monitored the efficiency of the employees after the transformation.

Capability represents what the company is  famous for. It is also non-financial value. For example, Apple is famous for its user-frienly products or Google is famous for the ability to forming the market etc. The capabilities also represents the results of HR facilities and company strategy. Talent, speed, collabrative thinking, responsibiliy, collaboration, learning, leadership, customer relationship, innovation, cooperation strategy, simplicity, social responsibility, risk, efficiency are the main capabilities in a company.

The company should determine the key capabilities to its future success. According to the priorities, it should be prepare the objective cards. The HR transformation results can be defined and monitored by focusing the results of the capabilities.


3.Step : How to transform? / Redesigning HR

This stage is the origin of HR transformation. There are 3 question that should be answered.
Who are you? (vision) : It represents the identity and image of the company that HR strategy offer. It focuses the future,creates the expectations, determine the direction and guide the evoluation of HR function.
What you provide? (mission or value proposition) : It consist of the non-financial capabilities to succeed. For instance, HR department should provide the efficiency.
Why do you do this? (results wanted to be obtained) : It may consist of the revenue growth, customer loyalty, total market profit. This allows to monitor the HR progress and the influence on work.

In the HR transformation the operational tasks and transformational tasks should be seperated.There are 5 main channels that share the responsibilities.
– Service Center : Techology innovations allow the centerilizations of different organizations such as IT to provide efficiency and reduce costs. Service centers should be available 7/24.
– Enterprise HR (HR Management) : The roles of enterprise HR is ; to provide consistent culture and image that includes whole business, to implement CEO’s agenda, make sure the HR workers are in the same line with the company objectives, solve conflicts between HR specialists and settled HR, to maintain the improvement of HR proffessionals.

– Settled HR (Strategic Partnership) : Clarify the strategy, perform the organizational audits, to manage skills and organization, to enrich the capabilities, leadership are the main roles of settled HR.
– Specialists Center : Provides consultancy services in the organization.
– Operational Implementation : Individual case studies, perform the operational tasks such as recruitment, analysing and reporting are the main duties of this channel.

After clarifying the HR department’s strategy and structure, then it must be focused to improve HR studies. There are two dimentions of HR facilities.
Content: What are HR facilities? (People, Performance, Communication, Business)
Process: How do we improve HR studies or how do we restructure them. (Alignment, Integration, Innovation)

4.Step : Who does it? /  Allocating Responsibilities
To achive the HR transformation, it should be allocated right people in right time and in right way. Participation is one of the most important factor to succeed. People are owing if they participate to the process. HR leaders and proffecionals, managers, outside customers and consultants should be participated to the HR transformation.Each group has different responsibilies for the transformation. For example HR leaders and professionals design the process, managers ensure to fit between transformation and company objectives, customers guide activities which are related to them, consultants make suggestions and warn about errors.

Milestones Of Each Step

1.Step Milestones: Business Context
– Accept HR transformation’s benefit
– Create a transformation team
– Identify new business reasons that requires the transformation of HR, evaluate and give priority
– Define and share main business reason to make HR transformation.
2.Step Milestones : Results
– Make organizational capability check to identify at least 2 best skills that business strategy requires.
– Make operational the key capabilities and determine the there the HR transformation results.
– Show all stakeholders how to benefit the capabilities that are obtained.
3.Step Milestones : Redesigning HR
– Define mission, vision expressions.
– Define clearly the HR organization.
– Give priorities to the HR facilities and integrate.
– Determine roles and responsibilities.
– Invest talented HR professionals who are capable to perform transformation.
4.Step Milestones : HR Responsiblities
– Choose right people to the trasformation team.

 

Conclusion

HR professioanls should not only focus entirely in the function of HR but also focus on all stakeholders such as customers, investors. HR professionals are also business partners of business to achive the  company goals.

 


REFERENCES

1. [HR Transformation, Dave Ulrich, Justin Allen, Wayne Brockbank, Jon Younger, Mark Nyman, Humanist]

May 22, 2013 - Posted by | MBA | , , , ,

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